NDRC proposes to adjust fertilizer price limit policy
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The report pointed out that "Once the supply of chemical fertilizers is lower than the agricultural demand, it will affect agricultural production, especially grain production, and it will have a greater negative impact on food security." It is suggested that the relevant departments adjust the policy orientation and control efforts in a timely manner for the fertilizer industry. Create conditions with the harmonious development of agriculture.
The reporter also learned yesterday that the China Petroleum and Chemical Industry Association has gone to seven provinces to investigate the production of chemical fertilizers, and the basic conclusion is that “enterprises are very difficult.†A representative of a large-scale fertilizer production company that declined to be named told reporters that the report may suggest that there has been a balance in the government for the previous strict fertilizer price limit policy. However, specific policies still need to be formulated by the government.
China has always attached great importance to agricultural products, and has introduced macro-control policies to ensure domestic supply, including the export of most raw materials for fertilizer products, adding special export tariffs; and introducing a more stringent price limit policy. The limit price range extends from the urea products produced by some enterprises at the beginning of the implementation of the policy to most chemical fertilizer products except potassium fertilizers. In late June of this year, the Development and Reform Commission also issued a notice requesting that special inspections of fertilizer prices be carried out nationwide and last until September.
It is reported that, subject to price control, some companies are currently unable to bear the cost pressures. The 600,000 tons of ammonium phosphate plant at Yunnan Sanhuan Zhonghua Cargill has been suspended due to serious losses in early June. In addition, major phosphate fertilizer companies such as Yuntianhua and Guizhou Kaiying have been suspended. Also began to reduce the operating load of the production plant.